Trade agreement opens doors for Lindt

Chocolatier gearing up for its expansion nationwide

The recently signed free trade agreement between Switzerland and China will help Swiss chocolatier Lindt & Sprngli to establish itself as the preferred premium chocolate brand in the country, according to the company.

As one of the originators of the globally renowned Swiss chocolate culture, Lindt's heritage dates back to the year 1845.

Ever since, the name Lindt has stood for premium chocolate, delighting consumers with innovative products of the highest quality, said Andreas Pfluger, vice-president responsible for Asian market.

"These are exactly the attributes that we want to pass on to the demanding Chinese chocolate lovers," Pfluger said.

Lindt products have been available on the Chinese market for the past decade via a network of distributors.

After years of double-digit growth in the market for premium chocolate, the company decided to establish their own base here.

In August 2012, a Lindt & Sprngli subsidiary in Shanghai was opened to incorporate the Swiss premium chocolate tradition into Chinese culture.

The subsidiary had a strong start, driven by the company's number one brand Lindor, which sold particularly well in metropolises like Shanghai, Beijing and Guangzhou. With its festive red and gold-colored premium packaging, Lindor is becoming increasingly popular as a gift, especially for the Chinese New Year.

"We are continuously expanding our presence in China," Pfluger said.

Currently, Lindt chocolates are available in more than 40 cities at nearly 3,000 sales outlets. To guarantee the perfect condition of its products, the main distribution channels are gourmet food outlets and department stores, Pfluger said.

"For the near future, we believe that Lindt & Sprngli China will manage to establish itself as the preferred supplier for premium chocolates and therefore contribute to our overall sales results.

"The recently approved Free Trade Agreement between Switzerland and China will further support this expansion," Pfluger said.

He believes there is tremendous potential for growth in the Chinese market. Currently per capita chocolate consumption on the Chinese mainland is about 100 grams a year, compared to 500 g in Taiwan, 1.6 kilograms in Japan and 12 Kg in Switzerland. More and more chocolate is being sold in China. And the number will grow even larger.

At present, per capita consumption in the mainland's first-tier cities is already equal to that in Taiwan. However, compared to figures in the West there is still a huge potential to be explored, Pfluger said.

To better cater to the Chinese customers, the company has designed a special strategy, he said.

"We realized that a successful sales concept is needed to introduce our brand to a new market with little to no chocolate tradition," Pfluger said.

"This is why we created special Lindt Boutique corners in department stores to present to the consumers our unique chocolate expertise and allow them to taste the outstanding quality of Lindt chocolate.

"So far, 100 Lindt Chocolate Corners have been established, and we have plans to open many more over the next couple of years," he said.

"By taking part in selected events, such as the House of Switzerland during the Beijing Olympic Games in 2008 and the World Chocolate Wonderland in Beijing in 2010, our Lindt master chocolatiers impressively presented their craftsmanship and expertise as well as our fine chocolates to a growing audience by convincing them of our outstanding product quality."